Drug Companies Upset With Canadian Patent Trends
Drug companies are increasingly upset with Canadian officials over patent trends in the country. Canadian courts have begun revoking certain patents on medicines and treatments based on their “usefulness.” Canada’s courts have made 21 such decisions since the year 2005, revoking 18 patents from 10 companies. As a result, Canadian companies were allowed to make their own versions of the drug prior to conclusion of the twenty-year patents.
Drug companies are arguing that the patent challenges are in violation of the World Trade Organization’s trade agreement on Patent Rights, called the Trade-Related Aspects of Intellectual Property Rights (TRIPS). Drug companies also claim that the Canadian courts are in violation of the North American Free Trade Agreement.
The Canadian Generic Pharmaceutical Association has argued in favor of the Canadian courts, and in March of 2013 the trade group released a report on the situation. The report stated in part that drug companies need to be held “to the promises they made when applying for their patents in the first place. This just means that patent applicants should think twice before over-promising in their patents. The pharmaceutical industry suggests that the Canadian approach will undermine pharmaceutical investment. In truth, however, Canada’s courts elevate sound investment over speculative investment.”
Eli Lilly, one of the companies upset with Canada’s rulings, has threatened to bring a NAFTA challenge against the Canadian government. Eli Lilly believes that the Canadian government is intentionally misrepresenting the usefulness of their drugs and their patent rights. Eli Lilly has asked for a more strict interpretation of a drug’s “usefulness.”